Business ownership

Question 1

Advantages of being a sole trader?

Answer 1

being the only owner means most profits made go to you and a small portion go to workers.
You get to make all the decisions.
Not many employees to pay

Question 2

Disadvantages of being a sole trader?

Answer 2

Less employees to work for you
Less likely to be loaned
Unlimited liability means you are responsible for all debts

Question 3

Advantages of being in a partnership?

Answer 3

Can make more profit
More likely to get a loan
Debts shared between all the owners

Question 4

Disadvantages of being in a partnership?

Answer 4

Profit shared between all owners and employees

Employees may want more pay

Question 5

Advantages of owning a franchise?

Answer 5

The more franchisee’s you have means more profit made
Make a high percentage of cash from franchisee’s
Debt is on the business and not the owners

Question 6

Disadvantages of owning a franchise?

Answer 6

Lots of paperwork
Employees could strike if not satisfied
you keep less profit